Hi everyone. I just realized that with my schedule and my temperament I will prefer to place my trades on a longer time frame, atleast one hour instead of the fast 5 or 15 mins scalping. But the problem am having with this is the kind of crazy volatility that the news release can provide which can ultimately alter my previous predictions, since atimes I need to keep the trade opened for up to two days or more to get my full profit. Is there a way I can avoid been cut out of the trade by the news volatility??
I appreciate you’ve lengthened your time-frame considerably from where you were, but running trades for days after an entry on minutes or hours is just not to be tried.
Why not go to the daily time-frame and work from there? Stop-losses at a distance of more than a daily ATR14 from entry will hardly be tickled by news volatility unless its a full-on trend reversal, which is almost as rare as a black swan. You can always accelerate your trading again to broaden your portfolio once you’ve perfected your D1 approach.
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Hmmm…thanks for ur ideas, so if am right…your point is that trading on a daily chat will give my trades more breathing room and a large enough stop that news volatility can’t cut. But how about I make my analysis on the daily chart and pick my trades on the 4h or 1h chart. Because taking my trades on a daily time frame will definitely involve larger stops and I dont think my account size can carry that.
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Decrease your lot size, then.
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I use 1.5x the 10day ATR for my trailing stoploss.
I have 2% of the account balance on the trade, trading the daily candle.
If you watch No Nonesense Forex video on youtube about “news” he lists the major news he tends to avoid, not many for each currency. Other than a handfull trading the daily close and with a decent buffer to your stoploss you should be fine.
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Smiles…I am from Nigeria where 100 dollars equals 45,000 naira, and I use 0.02 lot size. Well thanks for the advice. maybe I will just cut it down to 0.01 and take my little profits until I have a larger account.
Please what’s 1.5x. Can u shed more light??
Here’s a good video explaining how to use the ATR to determine lot sizing per currency;
And here’s one explaining how to use the ATR and lot sizing combined to chose a “safe” Stoploss position.
Obviously test and adjust the values based on the way you trade.
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Thanks for the videos man. So helpful
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You can probably use the stop loss to minimise any future losses and trade on shorter time frames for now.
@chrisfraser05 Thanks for sharing valuable infor.
Volatility can be turned into a good thing for investors hoping to make money in choppy markets, allowing short-term profits from swing trading.